The numbers don’t lie: roughly 20% of restaurants fail within the first year.
The belief is that the restaurant industry has a notoriously high failure rate. However, the numbers put it about on par with other businesses. Still, a 20% failure rate within a year means that anyone who is thinking about opening a restaurant needs to understand the industry well.
So how can you grow your restaurant business and run a successful restaurant?
It’s not impossible, but it is a lot of work. Follow these tips and watch your restaurant succeed.
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Have a Kitchen Hierarchy
Consistency is key. Nothing is more frustrating for customers than inconsistent food quality or service.
In order to have the consistency you need a chain of command with a clear succession of leadership. This starts at the top with your executive chef, who makes all of the managerial decisions. This includes what ingredients to use, and what dishes go on the menu.
Below them is the head chef. They act as an operational manager and oversee the kitchen staff. For smaller restaurants, the head chef may also act as the executive chef.
When everyone is doing their job, and someone at the top of the hierarchy is setting a standard, you will get consistent results.
Check out a kitchen hierarchy guide for a full overview of the duties and responsibilities of each position.
Learn to Upsell
One of the easiest ways to increase your existing restaurant sales is through upselling. Upselling is simply convincing your customers to buy more items, such as suggesting they order dessert. Desserts, alcoholic drinks, or soda can also serve as complementary items to your customers’ orders.
Train your staff to build a rapport with their customers, so they will be more likely to consider a suggestion from your wait staff.
You can also offer takeout options. Your customers may be too full for dessert right now, but they may want to order it and take it home.
Increase Your Table Turnover Rate
Your table turnover rate measures how often your tables are occupied during a specific period. The higher your table turnover rate, the greater your chance of generating higher revenue. If diners stay too long, you have fewer available seats for other patrons.
You can increase your table turnover in a few different ways:
- Re-arrange your dining layout to increase seating
- Make sure your staff is attentive to guests’ needs
- Using digital menus and payment solutions to speed up processes
If you’re not sure how to calculate your table turnover rate, check out this link.
Grow Your Restaurant Business With These Tips
The restaurant business isn’t known for being easy, and managing a restaurant isn’t for the faint of heart. Restaurant owners should always be on the lookout for ways to streamline their processes and grow their revenue. It’s an exciting industry to be a part of, but it takes a lot of work to maintain profitability.
If you liked this article, check out the rest of our site for more business tips and advice.